21/06/2010 00:00 AST
Emaar Properties surged yesterday, lifting the Dubai index to a two-week high, on improved investor sentiment and hopes for positive second-quarter results.
Dubai’s index rose 3.1% to 1,547 points. Abu Dhabi’s measure gained 0.8% to 2,536 points.
Saudi Arabia’s index rose 1.1% to 6,413 points.
Kuwait’s benchmark rose 0.9% to 6,641 points. Oman’s measure edged up 0.4% to 6,133 points. Bahrain’s benchmark inched 0.1% lower to 1,392 points.
Saudi stocks rose in line with most other regional bourses, buoyed by higher crude oil prices, as investors shrugged off worries about global economic difficulties.
Emaar, the Arab world’s largest-listed property developer, gained 8.6% to a three-week high, accounting for nearly a third of stocks changing hands on the Dubai exchange.
“The negative themes are priced in, there are no sellers of size left in the market,” said Ali Khan, managing director and head of brokerage at Arqaam Capital.
“Emaar’s projects are on schedule, there is no negative, no headwinds on the stocks ... the background is increasingly improving,” he added.
Emaar said last week it was handing over part of the operations of its Hamptons International subsidiary to British estate agency Countrywide, as it focuses on the Middle East and North Africa.
Other real estate-related stocks such as Arabtec and Union Properties also gained, advancing 6% and 1.6% respectively.
Low-cost carrier Air Arabia gained 1.7%. Bahrain-based Sico Investment Bank initiated coverage of the stock with a long-term “buy” recommendation.
Last week, HSBC raised Air Arabia to “overweight” from “neutral”.
Property stocks also dominated trading in Abu Dhabi, helping lift the index 0.8%.
Aldar Properties and Sorouh Real Estate gained 4.7% and 1.6% respectively.
On Riyadh’s bourse, heavyweight Saudi Basic Industries (Sabic) ended 2.2% higher, lifting the index 1.1%.
US crude oil prices finished higher on Friday in their second weekly gain.
In Kuwait, Zain advanced 5.6%, as the telecoms firm recouped some losses from the previous week, helping lift the index 0.9% to 6,641 points.
“It has bounced to above the 6,500 level, which is a decent support,” said a Kuwait-based trader.
The trader said he did not expect in the coming weeks “a major bounce, probably most sideways trading with more scope for a positive than a negative move”.
Reuters
Please wait...
